Dáil Éireann Debate, Thursday - 30 March 2017
149. Deputy Michael McGrath asked the Minister for Finance if there is a mechanism in place whereby he can update or change the 2016 regulations with regard to credit unions; if legislation is required if such changes were to be made; and if he will make a statement on the matter. [15976/17]
View answerMy role as Minister for Finance is to ensure that the legal framework for credit unions is appropriate for the effective operation and supervision of credit unions.
The Registrar of Credit Unions at the Central Bank is the independent regulator for credit unions. Within her independent regulatory discretion, the Registrar acts to support the prudential soundness of individual credit unions, to maintain sector stability and to protect the savings of credit union members.
The Report of the Commission on Credit Unions made a number of recommendations regarding the strengthening of the regulatory framework for credit unions and also recommended that regulation making powers be delegated to the Central Bank. This report was agreed by all stakeholders, including credit union representative bodies. Over 60 of these recommendations were reflected in the Credit Union and Co-operation with Overseas Regulators Act 2012 (2012 Act), which was enacted on 19 December 2012. The 2012 Act was commenced in tranches over a period of time with the last tranche commenced on 1 January 2016.
Those sections of the 2012 Act commenced on 1 January 2016, replaced, amended or supplemented sections of the Credit Union Act, 1997 and provided the Central Bank with the power to make regulations. Amendment of these regulations is a matter for the Central Bank.
In order to increase transparency and confidence in the regulation making process, consultation arrangements are provided for in 84A(2). The Consultation Protocol for Credit Unions, published by the Central Bank in 2012, indicates that the Central Bank will consult on new regulations that will, in the view of the Central Bank, potentially have a significant impact on the business of credit unions. Under section 84A of the Credit Union Act, 1997 the Central Bank before making regulations is required to consult with:
- The Minister and the Credit Union Advisory Committee,
- Any other body that appears to the Bank to have expertise or knowledge of credit unions generally, and
- Any other body that the Bank considers appropriate to consult in the circumstances.
